What are the eligibility criteria?
Please see the ‘Quick check RLS eligibility criteria’ section on this page.
Am I guaranteed to be eligible for a RLS Phase 3 Loan?
Unfortunately, we can’t guarantee that you’ll be eligible.
You must be an existing HSBC business customer or complete our on boarding procedures so we can provide your loan.
You must meet the scheme rules which are set out in the eligibility criteria here.
Do I need to provide evidence that I have a viable business?
Yes. You must show in your borrowing proposal that your business will generate sufficient income to meet the repayments of the business liabilities. We will then assess your borrowing proposal using our normal lending criteria.
Who will be classed as part of the same group as me?
Enterprises having at least one of the following relationships with each other will be classed as part of the same group:
(A) one enterprise has a majority of the shareholders’ or members’ voting rights in another enterprise;
(B) one enterprise has the right to appoint or remove a majority of the members of the administrative, management or supervisory body of another enterprise;
(C) one enterprise has the right to exercise a dominant influence over another enterprise pursuant to a contract entered into with that enterprise or to a provision in its memorandum or articles of association;
(D) one enterprise, which is a shareholder in or member of another enterprise, controls alone, pursuant to an agreement with other shareholders in or members of that enterprise, a majority of shareholders’ or members’ voting rights in that enterprise; or
(E) an enterprise is otherwise able, directly or indirectly, to control or materially to influence the policy of another enterprise as regards carrying on an economic activity that entails offering goods or services on a market, even if the enterprise does not have a controlling interest in that enterprise.
For this purpose, an ‘enterprise’ refers to any entity or person engaged in an economic activity, irrespective of its legal form. Enterprises having any of the relationships referred to in points (a) to (e) above through one or more other enterprises shall also be considered to be a single group.
I have or a member of my group has received a subsidy in the past, can I still get a loan?
Yes, as long as you meet the scheme's eligibility criteria. Any previous subsidy received by you or any member of your group, however, may impact your eligibility for RLS Phase 3 and may reduce the maximum loan amount you would be eligible for under RLS Phase 3.
What sectors are ineligible for RLS?
The following trades and organisations are not eligible to apply: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools.
What percentage of my annual turnover must be generated by trading activities to be eligible for RLS?
You must be generating together with your group more than 50% of your income from trading activity. RLS is not designed to support shell companies or investmentcompanies. Trading Activity is defined as any activity that generates turnover (whether or not such activity is carried on with the intention of making a profit).Please note, if you are a registered charity or further education college, and we offer you a loan on or prior to 31 December 2022, then this criterion will be satisfied if youare or will be engaged in activities in the UK as at the initial draw down date of that loan.
Is there a maximum turnover?
The maximum turnover is £45,000,000.
Are there any limitations?
If you are not in scope of the Northern Ireland Protocol, the maximum RLS Phase 3 loan amount is £2,000,000 however this may be reduced if you or any member of your group have received previous relevant subsidies. We will require you to confirm the relevant subsidy (if any) you have received as part of your application.
If you are in scope of the Northern Ireland Protocol, the maximum RLS Phase 3 loan amount is £1,000,000 however this may be reduced if you or any member of your group have received previous relevant subsidies and/or are in one of the following sectors, which will be subject to maximum loan amount sub-limits as follows: £110,000 for agriculture, £170,000 for fishery and aquaculture and £570,000 for road haulage. We will require you to confirm the relevant subsidy (if any) you or any member of your group have received and whether your business is in one of these sectors as part of your application.
How should I calculate trading activity and turnover for start ups?
For start-ups, or SMEs which have traded for less than 12 months, you should estimate this based upon your business forecasted turnover for the first 12 months of trading.
Are there any sector specific considerations that I need to consider when applying for a loan?
Sector specific considerations are applicable when considering whether your business is within scope of the Northern Ireland Protocol. These apply to businesses active in the agriculture, fishery and aquaculture and road haulage sectors.
